Rocket Lab Secures $816 Million Contract with U.S. Space Force
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy RKLB?
Source: NASDAQ.COM
- Major Contract Awarded: Rocket Lab secured an $816 million contract from the U.S. Space Force in December to design and manufacture 18 satellites, elevating its total defense contract value above $1 billion and solidifying its position in the aerospace sector.
- Analyst Rating Upgrade: Morgan Stanley upgraded Rocket Lab from 'Equal Weight' to 'Overweight', raising its price target from $67 to $105, citing the company's proven execution capabilities in the capacity-constrained medium-lift market as a key driver.
- Successful Rocket Launches: The company successfully launched two rockets in January, surpassing the 80-mission mark, which reflects its high-level execution and boosts investor confidence in its operational capabilities.
- Execution Risks Emerge: Despite its achievements, Rocket Lab faces significant execution risks, particularly after NASA canceled the $4 billion Mars Sample Return program and a testing failure in the Neutron rocket program, raising concerns among investors about future performance.
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Analyst Views on RKLB
Wall Street analysts forecast RKLB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RKLB is 73.11 USD with a low forecast of 60.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 73.110
Low
60.00
Averages
73.11
High
90.00
Current: 73.110
Low
60.00
Averages
73.11
High
90.00
About RKLB
Rocket Lab Corporation is an end-to-end space company. The Company designs and manufactures small and medium-class rockets, spacecraft and spacecraft components, and related software and services to support the space economy. The Company delivers reliable launch services, satellite manufacture, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions that make it easier to access space. Its Launch Services segment provides launch and launch-related services to customers on a dedicated mission or ride-share basis. Its Space Systems segment comprises the design and manufacture of spacecraft components and spacecraft program management services, space data applications, and mission operations. Its space systems solutions are the building blocks for spacecraft, which include composite structures, reaction wheels, star trackers, solar solutions, radios, separation systems, and command and control spacecraft software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rocket Lab's 2026 Outlook Amid SpaceX IPO Buzz
- New Rocket Initiative: Rocket Lab plans to debut its next-generation reusable rocket, Neutron, in the first half of 2026; however, a recent tank rupture during qualification testing may delay this timeline, highlighting the company's heavy reliance on Neutron's successful launch.
- Electron Rocket Performance: The Electron rocket has successfully completed 81 launches and deployed nearly 250 satellites, with increasing launch cadence expected to directly boost revenue and margins, thereby supporting the development of Neutron and other new verticals.
- Stock Volatility: Rocket Lab's stock exhibits significant volatility, with a beta of 2.18 indicating it will be more than twice as volatile as the overall market, necessitating that investors prepare for potential dramatic price movements based on launch success or failure news.
- Intensifying Market Competition: With the potential IPO of SpaceX looming, Rocket Lab is likely to attract more attention and face direct comparisons with its larger competitor, suggesting that while the outlook may be optimistic, the path to growth is expected to be bumpy.
See More
Rocket Lab Secures $816 Million Contract with U.S. Space Force
- Major Contract Awarded: Rocket Lab secured an $816 million contract from the U.S. Space Force in December to design and manufacture 18 satellites, elevating its total defense contract value above $1 billion and solidifying its position in the aerospace sector.
- Analyst Rating Upgrade: Morgan Stanley upgraded Rocket Lab from 'Equal Weight' to 'Overweight', raising its price target from $67 to $105, citing the company's proven execution capabilities in the capacity-constrained medium-lift market as a key driver.
- Successful Rocket Launches: The company successfully launched two rockets in January, surpassing the 80-mission mark, which reflects its high-level execution and boosts investor confidence in its operational capabilities.
- Execution Risks Emerge: Despite its achievements, Rocket Lab faces significant execution risks, particularly after NASA canceled the $4 billion Mars Sample Return program and a testing failure in the Neutron rocket program, raising concerns among investors about future performance.
See More
Rocket Lab Stock Continues to Climb Amid Major Contracts
- Defense Contract Boost: Rocket Lab secured an $816 million contract with the U.S. Space Force on December 19 to design and manufacture 18 satellites, bringing its total defense contract value above $1 billion, solidifying its position in the aerospace sector.
- Stock Price Surge: The stock rose 14.8% in January 2025, driven by positive news and Morgan Stanley's upgrade from 'Equal Weight' to 'Overweight,' raising the price target from $67 to $105, reflecting strong market confidence.
- Successful Launches: Rocket Lab successfully launched two rockets on January 22 and 30, surpassing the 80-mission milestone, showcasing its efficient launch execution and further boosting investor confidence in its operational capabilities.
- Facing Challenges: Despite its achievements, Rocket Lab faces execution risks, particularly after Congress canceled the $4 billion Mars Sample Return program and a testing failure in its Neutron rocket program, which could impact future growth prospects.
See More
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- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, helping to assess the long-term trend of the stock.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing notable inflows or outflows, which can affect the performance of individual stocks held within the ETFs, reflecting shifts in market demand for specific assets.
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Rocket Lab Loses Mars Sample Return Opportunity Amid Market Pressure
- Mars Sample Return Setback: Congress's decision to decline funding for the 2031 Mars sample-return mission effectively ends Rocket Lab's chance to secure a $4 billion contract, significantly undermining its long-term growth narrative and potential for high-margin deep-space missions.
- Market Pressure Intensifies: Rocket Lab shares fell 6.58% to $68.34, reflecting broader market weakness as the S&P 500 dropped 1.35% and the Nasdaq-100 slipped 1.61%, indicating the stock's strong correlation with overall market trends.
- Technical Indicators Show Mixed Momentum: Despite a 138.5% increase over the past year, the stock is currently trading below its 20-day and 50-day simple moving averages, suggesting potential further downside pressure, with key support at $67.00.
- Earnings Outlook Positive: Investors are looking forward to the earnings report on February 26, with an estimated loss of 9 cents per share and revenue of $178.07 million, indicating potential for revenue growth, while analysts maintain a “Buy” rating with a price target of $64.00.
See More
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- IPO Anticipation: SpaceX's potential IPO in 2026, valued at $1.5 trillion, is drawing investor attention while simultaneously causing capital outflows from other space companies, indicating a strong market preference for SpaceX.
- Capital Rotation: As investors shift funds from established public players to SpaceX, many public peers have experienced significant double-digit declines over the past 30 days, reflecting a cautious market sentiment towards emerging space companies.
- Divergent Stock Performance: While AST SpaceMobile has shown resilience due to its satellite-to-phone milestones, hardware and launch providers like Rocket Lab and Sidus Space have suffered greater losses, highlighting varying levels of market confidence among different companies.
- Challenges for Rocket Lab: Rocket Lab is racing to deploy its reusable Neutron rocket, but remains at a disadvantage until it transitions from the expendable Electron model, impacting its competitive position in the market.
See More
Rocket Lab's 2026 Outlook Amid SpaceX IPO Buzz
- New Rocket Initiative: Rocket Lab plans to debut its next-generation reusable rocket, Neutron, in the first half of 2026; however, a recent tank rupture during qualification testing may delay this timeline, highlighting the company's heavy reliance on Neutron's successful launch.
- Electron Rocket Performance: The Electron rocket has successfully completed 81 launches and deployed nearly 250 satellites, with increasing launch cadence expected to directly boost revenue and margins, thereby supporting the development of Neutron and other new verticals.
- Stock Volatility: Rocket Lab's stock exhibits significant volatility, with a beta of 2.18 indicating it will be more than twice as volatile as the overall market, necessitating that investors prepare for potential dramatic price movements based on launch success or failure news.
- Intensifying Market Competition: With the potential IPO of SpaceX looming, Rocket Lab is likely to attract more attention and face direct comparisons with its larger competitor, suggesting that while the outlook may be optimistic, the path to growth is expected to be bumpy.
See More
Rocket Lab Secures $816 Million Contract with U.S. Space Force
- Major Contract Awarded: Rocket Lab secured an $816 million contract from the U.S. Space Force in December to design and manufacture 18 satellites, elevating its total defense contract value above $1 billion and solidifying its position in the aerospace sector.
- Analyst Rating Upgrade: Morgan Stanley upgraded Rocket Lab from 'Equal Weight' to 'Overweight', raising its price target from $67 to $105, citing the company's proven execution capabilities in the capacity-constrained medium-lift market as a key driver.
- Successful Rocket Launches: The company successfully launched two rockets in January, surpassing the 80-mission mark, which reflects its high-level execution and boosts investor confidence in its operational capabilities.
- Execution Risks Emerge: Despite its achievements, Rocket Lab faces significant execution risks, particularly after NASA canceled the $4 billion Mars Sample Return program and a testing failure in the Neutron rocket program, raising concerns among investors about future performance.
See More
Rocket Lab Stock Continues to Climb Amid Major Contracts
- Defense Contract Boost: Rocket Lab secured an $816 million contract with the U.S. Space Force on December 19 to design and manufacture 18 satellites, bringing its total defense contract value above $1 billion, solidifying its position in the aerospace sector.
- Stock Price Surge: The stock rose 14.8% in January 2025, driven by positive news and Morgan Stanley's upgrade from 'Equal Weight' to 'Overweight,' raising the price target from $67 to $105, reflecting strong market confidence.
- Successful Launches: Rocket Lab successfully launched two rockets on January 22 and 30, surpassing the 80-mission milestone, showcasing its efficient launch execution and further boosting investor confidence in its operational capabilities.
- Facing Challenges: Despite its achievements, Rocket Lab faces execution risks, particularly after Congress canceled the $4 billion Mars Sample Return program and a testing failure in its Neutron rocket program, which could impact future growth prospects.
See More
VBK Stock Price Analysis and ETF Dynamics
- Stock Price Fluctuation: VBK's 52-week low is $214.77 and high is $329.04, with the latest trade at $305.86, indicating significant price movement that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, helping to assess the long-term trend of the stock.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing notable inflows or outflows, which can affect the performance of individual stocks held within the ETFs, reflecting shifts in market demand for specific assets.
See More
Rocket Lab Loses Mars Sample Return Opportunity Amid Market Pressure
- Mars Sample Return Setback: Congress's decision to decline funding for the 2031 Mars sample-return mission effectively ends Rocket Lab's chance to secure a $4 billion contract, significantly undermining its long-term growth narrative and potential for high-margin deep-space missions.
- Market Pressure Intensifies: Rocket Lab shares fell 6.58% to $68.34, reflecting broader market weakness as the S&P 500 dropped 1.35% and the Nasdaq-100 slipped 1.61%, indicating the stock's strong correlation with overall market trends.
- Technical Indicators Show Mixed Momentum: Despite a 138.5% increase over the past year, the stock is currently trading below its 20-day and 50-day simple moving averages, suggesting potential further downside pressure, with key support at $67.00.
- Earnings Outlook Positive: Investors are looking forward to the earnings report on February 26, with an estimated loss of 9 cents per share and revenue of $178.07 million, indicating potential for revenue growth, while analysts maintain a “Buy” rating with a price target of $64.00.
See More
Space Stocks Face Resistance in 2026 Amid SpaceX IPO Hype
- IPO Anticipation: SpaceX's potential IPO in 2026, valued at $1.5 trillion, is drawing investor attention while simultaneously causing capital outflows from other space companies, indicating a strong market preference for SpaceX.
- Capital Rotation: As investors shift funds from established public players to SpaceX, many public peers have experienced significant double-digit declines over the past 30 days, reflecting a cautious market sentiment towards emerging space companies.
- Divergent Stock Performance: While AST SpaceMobile has shown resilience due to its satellite-to-phone milestones, hardware and launch providers like Rocket Lab and Sidus Space have suffered greater losses, highlighting varying levels of market confidence among different companies.
- Challenges for Rocket Lab: Rocket Lab is racing to deploy its reusable Neutron rocket, but remains at a disadvantage until it transitions from the expendable Electron model, impacting its competitive position in the market.
See More
